Bitcoin Finds Support Above $82,000 Despite Recent Correction Amid Government Initiatives
Bitcoin (BTC) is currently trading above $82,000, experiencing a gain of over 4% in the past 24 hours as part of a broader correction from its recent all-time high of $109,350. Despite this significant 30% retracement, multiple technical indicators and fundamental developments suggest this downturn may be approaching its conclusion rather than signaling the beginning of a bear market.
With the S&P 500 declining 6% last week to lowest point in six months, this correction falls amid a turbulent time for conventional financial markets. But the price movement of Bitcoin BTC/USD is very different from past bear market cycles, especially the November 2021 collapse that saw BTC drop 41% in just 60 days.
Government Bitcoin Initiatives Gain Momentum as Regulatory Framework Evolves
Reintroducing the BITCOIN Act of 2025 in the 119th Congress, Senator Cynthia Lummis has significantly advanced institutional Bitcoin acceptance by bringing in additional Republican co-sponsors including Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
Inspired by President Trump’s most recent executive order creating a “Strategic Bitcoin Reserve” and “Digital Asset Stockpile,” the revised law improves upon Although the original measure instructed the government to buy 200,000 Bitcoin yearly over five years, the resurrected version creates opportunities for holdings to surpass the initial 1 million BTC target using means other than direct acquisitions.
- Civil or criminal forfeitures
- Gifts to the United States
- Transfers from federal agencies
- Voluntary deposits from U.S. states (stored in segregated accounts)
“We can ensure that our country will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy by converting the visionary executive action of the president into enduring law,” Senator Lummis said during the Bitcoin Policy Institute conference on March 11.
The measure also creates a formal review mechanism for Bitcoin forks and airdrops, therefore guiding the Secretary to evaluate and maintain the most valuable assets depending on market capitalization following a required holding period.
State-Level Bitcoin Initiatives Face Potential Limitations
While federal Bitcoin projects progress, plans at the state level are running against resistance. Democratic Representative Ron Reynolds of Texas proposed a measure on March 10 limiting the state comptroller’s Economic Stabilization Fund cryptocurrency investments at $250 million. The law would also restrict counties and municipalities to $10 million in cryptocurrency investments.
This idea is based on legislation passed by the Texas Senate on March 6 establishing a strategic Bitcoin reserve in the state with possibly limitless buying power. The contradicting strategies draw attention to growing political differences on federal and state level bitcoin policy.
Corporate Bitcoin Treasuries Attract Investment Products
Asset managers are creating fresh investment vehicles to profit from public firms’ increasing Bitcoin accumulation. Designed to monitor an index of corporations with at least 1,000 Bitcoin in their corporate treasuries, Bitwise debuted the Bitcoin Standard Corporations ETF (OWNB) on March 11.
“A lot of people ask: Why would businesses purchase and retain bitcoin? The response is straightforward: For the same exact reasons individuals do,” said Bitwise’s chief investment officer, Matt Hougan. “These companies view bitcoin as a strategic reserve asset that is liquid and limited — and not subject to the whims or money printing of any government.”
Among the ETF’s biggest holdings include mining companies MARA Holdings, CleanSpark, and Riot Platforming in addition to MicroStrategy (MSTR), which today owns around $41 billion worth of Bitcoin. BitcoinTreasuries.NET claims that corporate Bitcoin holdings today total $54 billion.
While REX Shares gets ready to introduce its own Bitcoin corporate treasury ETF, competing asset managers are creating similar products; Strive is pursuing regulatory clearance for a “Bitcoin Bonds” ETF investing in convertible securities from firms like MicroStrategy.
BTC/USD Technical Analysis: Four Signs the Bitcoin Correction May Be Complete
Several important benchmarks point to the possible end of Bitcoin’s current correction:
- Historical Pattern Comparison: The current 30% drawdown from the all-time high resembles the June 2024 correction rather than the November 2021 bear market. A true bear market would likely require a much deeper decline to around $64,400.
- Dollar Weakness: Unlike the late 2021 bear market when the DXY index strengthened significantly, the US dollar has weakened in 2025, falling from 109.2 to 104. Bitcoin typically maintains an inverse correlation with the dollar.
- Derivatives Market Stability: Despite the recent price drop, Bitcoin’s futures premium remains healthy at 4.5%, while the perpetual futures funding rate hovers near zero, indicating balanced leverage between longs and shorts. These metrics stand in stark contrast to previous bear markets.
- Macro Economic Factors: Growing concerns about a potential government shutdown on March 15 due to debt ceiling negotiations and early signs of a real estate crisis could actually benefit Bitcoin. Contract signings for homes hit an all-time low in January, and over 7% of FHA-insured loans are at least 90 days past due—surpassing the peak of the 2008 subprime crisis.
Bitcoin’s restricted supply qualities could grow more appealing if investors negotiate uncertainties in conventional markets and AI-oriented tech firms see notable falls. Technical resilience, a declining dollar, and possible capital outflows from struggling industries seem to point the way back to $90,000.
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